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Post by meganlynch on Feb 11, 2014 12:00:47 GMT -6
I was pleased to learn a new, relevant term to my business vocabulary. Disruptive innovation is taking place all the time. I can see how some big name products start trying to "upgrade" and add all kinds of things to make the product better, but end up being more complicated at a higher cost. Disruptive innovation is a great message on staying true to what your company was built on. It is important to stay close to your brand message and not stray away from what customers are going to you in the first place for. However, I do not think that this disruptive innovation is a completely terrible thing, I think it can be used to challenge businesses to keep coming up with the right products for the 'job' the consumers want done.
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Post by Deleted on Feb 11, 2014 12:54:40 GMT -6
You cannot please all of your customers. You have to pick and choose the customers you want to keep. Price is a simple way to lose customers. price increases can lose the price consious customers. On the other hand, most price increases are not simply from inflation. Price increases come from more personalized service, better food, larger space, etc. Depending on the characteristics of the price increase, more customers can be brought into the company.
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Post by nataliedodds on Feb 11, 2014 13:16:59 GMT -6
I have never even heard of disruptive innovation until this video. The idea is very interesting, and is done all around us. It allows small, more specific markets to compete with larger ones. The smaller markets don't have to do all of the research on the product that they are improving, thus saving them money. This is one reason why they can actually make money from this type of innovation.
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Post by bmcgarry13 on Feb 11, 2014 16:49:11 GMT -6
When disruptive innovation is done right, it is beneficial for both sellers and buyers. Disruptive innovation segments large pre-existing markets into several of individual markets. Small sellers can benefit because it provides an opportunity for them to compete with larger companies over profit. Buyers benefit because value is maximized from the disruptor through pricing. Simplified products sell for less, making them more attractive for low income buyers. Customer buying power is increased through greater product options and pricing. For any company attempting to create a disruptor, they really need to identify with their future customers' needs. Failure to create an effective product can lead to the creation of a "gimmick" which will lack long term demand and profitability.
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Post by xingboma on Feb 12, 2014 13:53:42 GMT -6
This video tell us never to neglect any competitor of any size of business, as they all can be a disrupter to your already established business and invade your current market share. This is why Facebook bought Instagram back in 2012, when everybody else thought Mark Zuckerberg was crazy to spend $1 billion dollars to buy a small competitor with 13 employees. The business growth shows Instagram is growing way faster than Facebook today.
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Post by stephaniesmith on Feb 12, 2014 21:08:15 GMT -6
It is a good way to understand innovation. I work with a company that has leading products in the consumable goods industry and is currently replacing toxic products produced by some of the largest manufacturers. We manufacture multiple product lines and are the industry leader in concentrated, green, and health products. This is a perfect example of disruptive innovation. Companies will soon need to compete for their market share back.
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Post by susiekaz on Feb 12, 2014 22:28:22 GMT -6
This video was a little hard to follow but I think it makes sense. Because bigger companies focus more on sustaining their current customers, they tend to forget about attracting new customers by offering innovative and inexpensive products. The disruptive innovators then create new markets and continue to help markets grow each day. I do not agree with the generalization of big companies. There are still companies out there like Walmart, Target and Amazon that focus on cheap products to attract a big audience.
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Post by patrickschwaner on Feb 13, 2014 9:19:24 GMT -6
In today's business environment, I feel like any small business must be "disruptive" when they are starting out. These disruptive innovations will help them stand out and gain attention and market share. As stated in one of our earlier link of the day videos, "ho-hum" or ordinary is the worst thing that a business can be these days.
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Post by shennellw on Feb 13, 2014 15:35:54 GMT -6
Finding your customers play a big part in this. Huge companies often neglect certain consumers. If you find a particular segment of a market that needs are not being met or not fully met, you can then create a demand for your product feeling their needs. Doing this the most cost efficient way can result in major profits in the long run.
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Post by sdoescher on Feb 16, 2014 12:08:20 GMT -6
I had heard the steel example before and found it interesting. However, I believe most wise businesses now know about disruptive innovation and take steps similar to those suggested to protect themselves. I think this is certainly something start-ups should be aware of and exploit.
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Post by jsherman on Feb 16, 2014 20:44:56 GMT -6
It's true that this is happening today but that just always goes right back to you always having that competitive advantage. It also plays apart in technology innovations. We are in a society that everything evolves so fast. So these businesses can't really take the time to sit and get upset at what the competition is doing because it is they're job to keep up.
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Post by allisonschex on Feb 17, 2014 21:01:43 GMT -6
Distruptive innovation is a term for companys who mimic other companies sucessful products. This is something that will always be around and can be a good or bad thing depending on the way you look at it. The way that i believe it can be a good thing is by getting a product for cheaper or easier to work. It could be a bad thing by not buying the product that works better or will last longer. Distruptive innovation is in every market from clothing, DVD players, cars, computers, and even food.
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Post by jessweaver on Feb 18, 2014 10:20:04 GMT -6
The only way for small businesses to survive in this ever changing world of business is innovation. Like the video mentioned, they must find a way to target the customers who are being neglected by large businesses and cater to their needs. Small businesses will find that the best customers are the ones who want the simple, cheaper products; they are probably the most loyal. These days, businesses are constantly trying to grow not only the size of their company but also their products. They are looking for the next best thing, and most of the times that means more expensive. Even though small businesses sometimes get a negative connotation, they are ultimately more successful than the larger firms.
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Post by arenee1370 on Feb 19, 2014 9:40:15 GMT -6
Disruptive innovation is something that I knew existed but never knew there was an actual term for it. It makes so much sense for entrepreneurs to break into the market by providing a product that larger companies have tried to "soup" up by adding unnecessary accessories to it. People don't want to pay for something they do not need or do not use.
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Post by benallbright on Feb 19, 2014 13:08:16 GMT -6
I can relate to this video with my family business of building boat engines. We were always the small competitor and focused on the customer relationship side more than the "just make a profit". It is really paying off now that we just signed the largest boat builder in the world for the ski market. We will be producing 14 motors a day by April 2015. This all happened because our competitor was so large they did not care about the small customers and now that multimillion dollar company is filing for bankruptcy.
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